GOVERNMENT POLICIES, REFORMS & FUNDING INITIATIVES

Recent Major Announcements & Ongoing Reforms (Last 6 Months – July 2025 – January 2026)

1. National Conference on Strategic Trade Controls (NCSTC) 2026 ✓ HELD JAN 16-17, 2026

Status: Just completed (January 16-17, 2026, New Delhi)

Key Outcomes:

  • SCOMET Framework Updates: Third edition of India’s Strategic Trade Control Handbook released, covering dual-use technologies, semiconductors, emerging technologies (quantum, AI, advanced computing)
  • Participation: 500+ stakeholders including government, industry, academia, international partners
  • Focus Areas:
    • Licensing framework for dual-use goods
    • Compliance mechanisms (Authorised Economic Operator program)
    • Intangible Technology Transfer (ITT) controls
    • Sector-specific sessions on chemicals, biotech, aerospace
    • Emerging technologies (quantum, semiconductors, additive manufacturing, cybersecurity)

Relevance to SIDMA: Critical for understanding export compliance requirements for scientific instruments, medical devices with dual-use potential, and laboratory equipment with sensitive technology components.

Contact: DGFT (Directorate General of Foreign Trade)

2. Medical Device Sector Policy Updates (2025-2026)

a) Risk-Based Device Categorization (January 2026)

  • 553 medical devices reclassified across cardiovascular and neurological segments
  • Classification Matrix: Class D (highest risk, 221 devices) → Class A (lowest risk, 28 devices)
  • Implementation: Risk-based surveillance intensity; high-risk devices face stricter scrutiny
  • Impact: Affects licensing requirements, inspection frequency, and compliance obligations

b) Digital Regulatory Pathways (Implemented April 2025 onwards)

  • Neutral Code System: Auto-generated codes for exports; no longer manual processing
  • Subsequent Importer Pathway: Faster import approval for pre-approved devices
  • Market Standing Certificates (MSC) & Non-Conviction Certificates (NCC): Fully digitalized through online portal
  • Impact: Simplified export documentation; reduced processing time; increased transparency

c) Labelling Norm Amendments (September 2025)

  • Medical Device Rules 2017 Override: MDR 2017 now sole labelling requirement (removes LMPC overlap)
  • Benefit: Single, uniform labelling standard; eliminated conflicting requirements
  • Effective From: September 2025

3. Medical Device Software Regulation (Draft Guidance – 2025)

Status: Draft guidance issued by CDSCO; implementation timeline TBD (expected 2026)

Key Provisions:

  • Risk Classification: 4-tier system for Software as Medical Device (SaMD):
    • Class A: Low risk (minimal patient harm potential)
    • Class B: Low-to-moderate risk
    • Class C: Moderate-to-high risk
    • Class D: High risk (critical to life functions)
  • Quality Management System: Mandatory IS/ISO 13485 compliance
  • Algorithm Change Protocol: AI/ML algorithm updates require documentation, validation, regulatory notification
  • Post-Market Surveillance: Cybersecurity vulnerability reporting, adverse event monitoring

Relevance: Applies to diagnostic software, monitoring systems, AI-powered devices

4. Medical Device Regulatory Amendments (Proposed – Expected 2026)

Draft proposals include:

  • Perpetual Validity Licenses: Manufacturing and import licenses now perpetual (subject to annual retention fees instead of periodic renewal)
  • Class A Registration Pathway: Simplified registration for low-risk, non-sterile, non-measuring devices
  • Inspection Rationalization: Risk-based inspection scheduling; sampling optimization
  • IVD Testing Laboratory Requirements: Enhanced reporting obligations; standardized quality schedules

Benefit: Reduced regulatory friction; greater certainty on license validity; streamlined compliance

A. Market Opportunities (2026 Focus)

OpportunityTimelineKey PlayersSIDMA Relevance
PLI Scheme ExpansionOngoingSiemens, Philips, BPL, PanaceaHigh—manufacturing support for complex devices
RDI Fund AccessMay 2026 onwardsStartups, MSMEs, established firmsHigh—₹1 lakh crore innovation financing
Medical Device ParksMarch 2027UP (Noida), TN, MP, HPHigh—manufacturing infrastructure & common facilities
Export Gateway (WHX Dubai)Feb 9-12, 2026Exporters, international tradersCritical—Middle East & Africa market access
Export Gateway (Korea Pharma)Mar 31-Apr 3, 2026Pharma machinery, lab equipment exportersHigh—Northeast Asia & South Korea market entry

B. Risk & Compliance Factors

Risk FactorMitigation
SCOMET Dual-Use ControlsEarly awareness of NCSTC 2026 updates; ensure compliance documentation for exports
Software Device Regulation (Pending)Monitor CDSCO draft guidance; begin AI/ML documentation frameworks now if applicable
Customs Duty UncertaintyBudget 2026-27 decision pending; prepare pricing strategies for both scenarios (7.5% vs. 10-15%)
License/Certification UpdatesTrack BIS compulsory certification list; plan for testing facility access early
Medical Device Park InfrastructureNoida park delayed to March 2027; early plot allotment recommended if manufacturing expansion planned

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